Asian Journal of Research in Banking and Finance
  • Year: 2015
  • Volume: 5
  • Issue: 9

Investigating the Impact of Earnings Management and Financial Distress on Audit Opinion of firms Listed in Tehran's Stock Exchange

  • Author:
  • Abolfazl Ghadiri Moghaddama, Amin Pishinianb, Zahra Rahimianb, Marziye Neistanib, Zaid Hossainian Rostamyb
  • Total Page Count: 8
  • Page Number: 68 to 75

aAssociate Professor and Manager of Hakiman Institute of Higher Education, Bojnourd, Iran

bM.A. Student of Accounting, Hakiman Institute of Higher Education, Bojnourd, Iran

Online published on 15 September, 2015.

Abstract

This study investigates the relationship between adjusted audit opinion and earnings management of firms listed in Tehran's Stock Exchange. Also, the modulatory effect of firm's financial distress on this relationship is examined and tested. For this purpose, the data of 135 firms listed in Tehran's Stock Exchange over 2010 to 2014 period and logistic regression were used. The results showed that a reversed relationship exists between earnings management and unacceptable audit opinion, and firm's financial distress cannot adjust this relationship.

Keywords

Auditing, Audit Opinion, Financial Distress, Earnings Management